Can ITC be claimed on canteen expenses?

Given the above, it can be said that impugned canteen expenses are eligible for the ITC under Section 16 of the CGST Act (subject to satisfaction of other conditions given under the GST laws).

Is GST applicable on canteen charges recovered from employees?

In a recent ruling, the Gujarat Authority for Advance Ruling (AAR) said that GST is not applicable on the amount collected from the employees towards canteen charges, which is paid to the canteen service provider.

Can we take GST input on staff welfare expenses?

Ans: ITC on such items is eligible as these expenses are incurred in the course or furtherance of business and may not be said to be for personal consumption of the employees. Further, some of such expenses are considered eligible expenses for CSR purpose.

Which expenditure is eligible for input tax credit?

A registered person (including an Input Service Distributor) can claim Input tax credit on the strength of the following conditions: a) He must possess a Tax invoice issued by the supplier of goods or services or both or Debit note issued by a supplier b) He must have received supply of goods or services or both c) He …

Can ITC be claimed on catering services?

ITC is not for the supply of following goods or services or both: Food and beverages. Outdoor catering. Beauty treatment.

What is a canteen expense?

Deduct canteen costs The canteen, in this context, does not refer to the refectory of a school: it refers to the meals you take and offer to your team or partners, as part of your working day. It may be a meal that would be delivered to your workplace.

Does your employer have to provide a canteen?

Although there are circumstances in which employers must provide a separate canteen or mess room where their workers can take their meals (see Factory workers below), there is no legislation that requires them to provide a full catering service.

What is the GST rate for canteen services?

5\%
5\% GST on any food/drink (non-alcoholic) served at cafeteria/canteen/mess operating on contract basis in office, industrial unit, school, college, hostel, etc.

What is included in staff welfare expenses?

For example:- Tea and refreshment expenses for the employees, medical expenses for the health of the employees or their family members, uniforms given to employees, concessional foods given to employees, personal accident insurance premium paid for employees etc.

What is ineligible input tax credit?

Any manufacturer, trader, retailer, supplier, e-commerce operator or any other person who is registered under the GST Act and has a valid GSTN can claim credit on purchases / inward supplies received by him. …

Can we get ITC on capital goods?

Capital Goods used only for Personal Use or for Exempted Sales. No ITC is available for personal purchases or for capital goods used in exempted sales.

Is input tax credit (ITC) available for canteen services provided by employer?

Musashi Auto Parts Pvt. Ltd. [Advance Ruling No. HAR/HAAR/R/2019-20/18 dated February 4, 2020] has held that Input Tax Credit ( ITC) is not available with respect to canteen services provided by the employer to their employees and on business promotion expenses.

What is the GST law on canteen facilities?

The canteen facility may be provided to employees at free of cost or concessional rate or on chargeable basis. The GST law with regard to food and beverages has created many confusions. Confusions prevail with regard to classification, rate as well as input tax credit. Supply of food – Goods or Service?

Is canteen service eligible for Cenvat credit?

Various courts have held that canteen service is an activity relating to business and therefore, cenvat credit on the same is eligible.

Is there any industrial obligation to provide canteen services to employees?

The Organization is under Industrial obligation to provide canteen services to its employees. A nominal amount of 25/- is recovered from employees towards the canteen facility.